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Consumers do not want to surrender their policies

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  • 13/11/2001
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The majority of consumers with endowment mortgage policies would rather sell their policy to a marke...

The majority of consumers with endowment mortgage policies would rather sell their policy to a market maker than surrender it back to the life office, according to research from Surrenda-link.

The survey, which questioned 4,000 consumers, found 79% of respondents held this view compared to 45% in last year’s survey.

Matthew Roche, marketing manager at Surrenda-link, said: ‘We are starting to see consumer awareness which is an encouraging sign for market makers. It gives them more choice of policies which in turn gives the end user more choice.

‘The overwhelming message from the survey in 2000 was that too few endowment holders were aware of their option to sell to a third party. A year on, however, a different picture of consumer attitudes is developing. Consumers are now more clued up about their options.’

Looking towards the future, Roche said awareness should grow further, which will be even more beneficial to market makers and added that the introduction of the FSA’s consultation paper would aid this process.

‘Now the FSA has issued a consultation paper, with a view to requiring life offices to disclose all available options to policyholders within to cash in appropriate policies, it should encourage even more people to investigate this option.’

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